The SEC Mandated Debate + Prohibition On Short Selling=Government Sponsored Market Tyranny/Only Chance In Hell To Bottom

Posted by timothysykes on Tue 15th of Jul, 2008 02:45:37 PM

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So now–after the public complains loud enough cuz they’re losing their asses in their “value investments” (learn to do some f%^&en due diligence you sh$%heads)–Osama bin SEC field agents have sent subpoenas, aka instruments of terror, to hedge fund managers and traders who are spreading bad rumors in order to profit from Short Selling these embarrassing financial companies.

short sellers The SEC Mandated Debate + Prohibition On Short Selling=Government Sponsored Market Tyranny/Only Chance In Hell To Bottom

Hell, right in the middle of me writing this post, Osama’s decided they’re even gonna clamp down on allowing people to short sell these turds! Just their latest terrorist act since they believe anyone who preaches and practices financial freedom to be infidels. (Emergency measures my Jew-ass, the problem lay with the companies and the leverage/power/manipulative-marketing-schemes themselves, not those who are smart enough to realize how fu$#ed these leverage/coke-loving bandits truly are, most assuredly business-wise and stock-wise too until the SEC just gave them a get out of jail free card for the latter)

This is big news–Osama bin SEC is mobilizing their terrorist committees so it’s gotta be covered by the financial media circus, giving us time-wasting debates like THIS one. I like that my man Lindzon defends short sellers, actually most of the people on there do, but WTF is the point of the whole debate in the first place?

Big bad SEC gonna investigate, rumors bad, punish bad opportunists, Short Selling so bad, or is it good, maybe it’s good, maybe companies are bad, why no SEC investigate them, oh wait, they hire lobbyists, they rich, they get government peeps in trouble, SEC no want lobbyist trouble, SEC weak, back to short sellers bad, commentators know it not fair, they smart, learn SEC, learn, watch Fox Biz, too bad nobody watches, lobbyists win, SEC stop short sellers…

Does Fox Biz really not understand that people don’t even know WTF Short Selling is? That we don’t need any more fu$#ing breaking news/journalist opinions from peeps who’ve never made a dime in the markets! That peeps have been pumped by so many fraudulent financial commercials and industry drones incessantly spewing marketing materials as if their job depended on it–which it does–that they’re scared to put their money anywhere and then when they finally do and lose, as is usually the case during bear markets, they blame it on the market being random? (It’s not random, you naive f%^&s, you’re just victims of sooooo much industry BS, you don’t know any better)

That people don’t understand how corrupt these companies are? $1.1 trillion in off balance sheet assets in Citigroup Inc. (C)–are you guys fu#%en kidding me? What’d you think it wouldn’t unravel sooner or later? What are you guys the dumbest pieces of s#t in the entire world? Have you not read Extraordinary Popular Delusions & The Madness Of Crowds? I know it’s gonna take up your precious coke time, but c’mon, if you’re gonna bet $1 trillion+, you should do some research first, don’t ya think? Or did you really believe that little piece of paper confirming you cheated/family-connectioned/hell maybe even studied hard (not that it makes much of a difference as LTCM peeps discovered) your way through school would be enough to get you through trillion dollar bets too?

Do these “experienced financial journalists” not get that they’re really only debating amongst their overly-educated /overly-cultured selfish selves as the rest of the world doesn’t give a crap about business/finance cuz you pricks have given the entire wrong impression/made it soooo boring, all they want is stock tips–and not the same old garbage being spewed by fee-earning soulless scumbags who are right about 50% of the time, or by peeps focusing on trends with hugely unpredictable time lags nor my favorite, those using their interns and underlings to come out with pathetically simplistic and fundamental-backed arguments ie wireless is strong + the PE is 12 + company growing at 40%/year = stock must be a buy which inevitably crank out random results for investors, not that it matters as these guys really only care about diddling their mistresses while wondering where their lives went wrong.

All I wanna do is get rich by making others rich too. Isn’t that how the entire financial markets should work? Do good and get rewarded. Not lie, cheat, steal, use leverage and pray to everything holy that you don’t fu%^ up or show how unpolished/undeserving/unintelligent/incompetent you really are.

My f$%#en God, I feel like I’m taking fu#%^ing crazy pills here!

Am I really the only motherf$%^&en person who reads and responds to each email so as to see EXACTLY what people don’t understand, all of which causes 90% of traders to lose $, 70% of mutual fund managers to underperform a friggin index that requires no management whatsoever and negligible fees, finance freaks are looked down upon as greedy soulless halflings (bingo!) and society as a whole could give two sh#$s about finance, the stock market, Fox Biz, CNBC, Maria gigantic-ass-iromo?!?!?!

My god people, are we all so ignorant/selfish to believe the odds aren’t great that we can’t see Dow 4,000 again (not if the SEC can help it–maybe their next step is to ban sellers of all kinds!), a figure that we passed just over a decade ago, a decade during which we as a society/joke of an industry created all sorts of formulas/financial instruments and technologies aka excuses that have deluded ourselves into thinking that “this time is different.”

No, we’ve simply made the mistake every generation seems destined to make only this time, there’s so many dumb motherf%$#en talking heads given so many platforms of near-instantaneous communication, it’s just gonna be more painful as our sins of the past are gonna be rubbed into our collective faces day in, day out so that one day we can warn our children about how dumb mommy and daddy’s generation was–not that our warnings will do them any good as they’ll have to experience it themselves–and so on and so forth until some alien accidentally trips on a nuclear switch and puts us all out of misery.

Now that’s the short seller’s way of thinking, no debate, prohibition or investigation required. Am I right? Now that Osama bin SEC has stepped in, we’ll never know…so much for freedom in America.

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Related Reading

Why GLG Partners Co-CEO Emmanuel Roman Is A Very Smart Man October 24, 2008
The World Is Backwards & We Are The Losers: China Introduces Short Selling & Margin October 6, 2008
Scapegoating Short Sellers Is Typical Wall Street aka Louise Story & The SEC Promote Ignorance September 17, 2008

ryan z

hell of a good rant timmay!! keep kicking ass and taking names

mattiefattie

I liked the rant today timmy.

studentofthegame

Wow, that was a hell of a rant... I liked it.

Chris

Even though it is a "rea" company...

http://finance.google.com/finance?q=NYSE:S&...

WTF?

brent

so why not stop the shorting of oil?

evan2024

libertarianism FTW

YngvaiMalmsteve

The way I read it, the SEC isn't looking to stop short selling...just naked short selling. I don't see the problem with that.

pretarch

There are bigger things in play.

One World Bank

One World Order

The Coming of the Anti-Christ???

It'll be interested to look back at today's time and see how many companies went bankrupt or were absorbed. It has been and will always be the survival of the fittest.

Only that the fittest make the rules and they can take away our only weapons with the "Day Trader" rule, and a possible ban on short selling among many other non-wall street stuff.

Accountability is on the eye of the dictator.

Jorge

brent

i thought that when you borrow share, short sell, that was naked. Isn't that what we do?

justin

are you saying the SEC is going to ban short selling? so you people can only go long now?

justin

are you saying the SEC is going to ban short selling? so people can only go long?

ivegotstylekid

see it the same as you ygnvai

YngvaiMalmsteve

Guys, the way I'm reading it, the SEC is looking to ban *naked* short selling. Naked short selling is NOT what we do here on Timmay's site. Naked short selling is where you short sell without arranging the borrow first.

I've got no problems with the SEC cracking down on *naked* short selling.

timothysykes

getting rid of naked short selling is fine, but the SEC just makes us all out to be villains...see the kinds of articles that pop up thanks to the misconceptions:

http://blogs.wsj.com/deals/2008/07/15/what-pric...

and thats the goddamn WSJ!

brent

so, when i "sell short" in my account, that pre-supposes that I have already arranged for borrowing first? Or, is that a broker thing. Because, I don't call to arrange, I just sell short and it happens if there are shares to short. What am I missing?

noobtrader.08

wow...

The Chad

My ears are still ringing from that rant. Tim, you know people are lazy; furthermore, who cares what the journal reads - "It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another."

ryan z

that's Rupert Murdoch's WSJ....

ryan z

[img]http://www.lostremote.com/wp-content/uploads/2008/02/simpsons.jpg[/img]

haha

Monkiman

Im so tired right now, but I think George Soros said that short sellers are there to balance the markets.

If I am wrong, don't mind me... Im just a tired trader who shorted the living crap out of FNM and FRE... suck on that you whining SEC bitches

Oracle of NYC

Well that's funny. I've made most of my money over the past two weeks short selling stocks, and not going long. In fact, since I last posted my gains here I am now up 106% as of today; that's in two and a half months altogether (deposited $7,300 so far, and have capital gains of $7,900, over $6,500 of which were made in the last two weeks since I found this blog). For the past four days though I've been picking my own stocks to short and not those on TIMalerts, only because my appetite hasn't been truly whetted by them. But using the techniques I've read about from Tim on this very blog, I've shorted RT, EVC, PPC, DTPI, CRME, and FHN and made a total of $3,664 in four days successfully shorting them all! By the way, as of July 7 I've been signed up with Covestor, and that upon your continued insistence, Tim.

Long live short selling I say!

getshorty

Short selling makes complete sense as a way to stop the delusion of crowds. THis is just the result of lobbying from big finance trying to save their ass.

getshorty

Ok, so big business buys the government and tilt the rules to their side, thats how it's been working since world goes round, on the energy industry, the aviation industry, the finance industry, you name the industry, you'll get a bought congressman. I understand the upset and maybe gets to change a part of it, but as long as business becomes big, it will be trying to buy goverments, is the U.S. in China, in Latin America, thats how the world has been working since it started spinning. For recent history read Michael MOore and if you don't feel like reading go rent The Aviator or JFK. Lobbying is here to stay for better or worse. Tim is making a good job of exposing the corruption, but in the meantime lets make money.

NOw lets talk money here, got out around even of cris and TMR

Staying long overnight ALTH, IDAE and MNLU, did like the MNLU and ALTH close, idae looks like loosing steam, hope its just accumulating, would sell if it starts turning around tomorrow, will short if ti breaks down $ 1.8 on volume.

Anybody long with me?

noobtrader.08

Yng,

What does that mean - arranging the borrow first? Please elaborate...

Thanks.

noobtrader.08

actually what is the difference between the above and short selling the way Tim explains it?

MARC

The way I understand it is the broker needs to have the shares readily available to be able to sell them. When they have them available its called sell short.When they sale shares and don

YngvaiMalmsteve

When you short sell a stock the regular way, you always borrow the stock from your broker first before you sell it. For stocks that are hard to borrow, you have to call or chat with the broker to see if there are shares available to borrow. For easy to borrow shares, there are so many available to borrow you don't need to call or chat with your broker...you're able to borrow them easily before you short sell.

Naked short selling is where you sell a stock WITHOUT borrowing it first. When you do this, you make a "promise" to deliver the shares, and you have up to 3 business days after you sold the stock to deliver them. In essence, you're selling first, then borrowing later. With the regular method, you're borrowing first, then selling.

Naked shorting is illegal when it is used to drive down share prices. In this case, the shorter sells the stock, and never fulfills his "promise" to borrow & deliver the shares in the 3 business days. This is called a "failure to deliver". With large enough sell orders, it drives down the stock price, and the shorter profits. Thus, manipulators are able to drive the stock price down without regard to normal supply/demand patterns.

noobtrader.08

in laymen-terms... it's basically me saying I'll give you $100 out of my pocket, when in fact I don't have $100 to give... I'm essentially giving you money that I don't actually/physically have on me, right?

YngvaiMalmsteve

Yep, but instead of money, it's shares.

noobtrader.08

Yng,

ic, ic... disregard my lame example... your's explained it perfectly.

Thanks man.

getshorty

So.... anybody long on mnul, alth or IDAE??

Am I the only one looking for a gap up on the first two and a continuation on the third one?

getshorty

make that mnlu instead of mnul

YngvaiMalmsteve

I was looking at buying MNUL into the close today, but decided not to. I didn't like how 4 candles in a row are sitting outside the upper bollinger band. That's not to say it won't gap up tomorrow...but I wouldn't have made enough profit on a gap up (unless it gaps up huge) to make it worth the risk for me.

Shu_Si

Short selling isn't transparent and greedy people are exploiting the situation right now.

It's a byproduct of free markets. Just like the dot.com bubbble and the current subprime mess we are in. If we don't stop people from illegally shorting companies into the ground we could very well have a global financial collapse.

Good luck shorting shares when there are no brokers or banks to put your orders in.

Fin.

Shu_Si

Also, consider how many baby boomers, close to retirement, are having their 401(K)'s and IRA's completely wiped out? Not completely, but those investment vehicles are no longer enough to retire on.

Shu_Si

Also, watch for the Uptick rule to be reinstated soon. If you are unfamiliar, read about it here:

http://en.wikipedia.org/wiki/Uptick_rule

Short sellers are at an all-time high since this rule was eliminated.

Mark my words.

getshorty

Sushi, what part of "They are planning to enforce the rule that does not allow to do naked shorts and we are not doing naked shorts anyway" you don't get?

getshorty

Hi Yngv, give me a little more light about your concern, isn't it always or almost always gonna happen that a supernova would be out of the upper bollinger bands since the breakout of a supernova also implies a spike in volatility?

Pleas correct me if am wrong.

YngvaiMalmsteve

I'm not saying that it won't go supernovaish. But even with other past supernovaish patterns (PDO, MXC, FPP, etc), you don't usually see more than 4 green bars almost completely outside the upper bollinger band. For example, PDO had one bar being cut in half by the UBB, then 4 bars outside it before selling off. MNLU already has 4 bars outside it, so to me, the odds of this continuing don't seem very high.

Again, though, not saying this can't continue. I'm just being *really* picky about my trades.

YngvaiMalmsteve

Oh, and I want to add, if I had caught the $6 break, I probably would've sold part of my position when it hit the high 6's today, and then held the other half overnight. But I missed the $6 break since I was tied up in GSPG so it wasn't worth it to me to play it overnight at that point.

timothysykes

Fuck the SEC, my new post is why we shall overcome:

http://www.timothysykes.com/timsykes/2008/07/15...

West1n

Prove people aren't naked short selling.

getshorty

Got it, thanks, always nice learning to see things from new angles.

That said, hope you are wrong on tomorrow opening : )

YngvaiMalmsteve

Haha, I hope I'm wrong too! I want to see you guys holding this O/N make some big bucks, while I wallow in regret for not buying into the close!

paulgoss

so I shorted bear at 90... went long at 75. shorted again and then my broker (chas Fag) would not allow me to short at 60.. I got beat by LEH and mer around 40 as it ran back up... I am waiting for another entry to short LEH but it's very crowded. Have owned fcx and aapl as well as chk and hk when they were hit... fun to watch the chart hop around... when I'm on the right side of the squeeze or the attack I'm liking shorts alot.. most are not real savvy and it's a kick to watch the action... be fast and nimble. cof has got to be a good one....credit debt has got to take these guys down.

lakhanin

TIM, you're stream of consciousness in the following paragraph is extremely difficult to read! Not to mention-- the entire paragraph is one !@#@#ing sentence. Just some constructive criticism.

Do these

joefoolz

wow , after they took the uptick rule away... its gone nutz XD

paulgoss

it's giving the same $100. to more than one shortie.

HoustonBIZ

I agree with the libertarian comment... let the markets decide.

jim

Jew bastards are pissing on the remnants of the american dream. Go back to Israel with your spoils.

Johnnysize

People, this requires an "affirmanative determination". Before the SEC got involved up to thier necks, you could locate securities through your broker. If they were in a widely held index and not on the REG SHO list, most institutions and hedge funds wouldnt even need to do that. They had "carte blanche" for up to a certain amount of shares, usually 100k. When securities are hard to borrow you are required to make reasonably certain that you can make delivery by settlement. The problem with short sales is with the broker dealers. They would routinely lend securities, relall, lend, recall, lend, do forward transactions, lend, do 3 day options contracts, lend, buy in, lend, and so on. There was never a checks and balances with stock loans. The SEC will not stop this process unless they put in a checks and balances where all securities have a home...not 3 homes. All this did was make the buyside traders job a little more painful by having to make another call.

Nun Ya

ha, ha. f'ers. you are the financial terrorist tim. Betting against your mom staying healthy might come to get her sick too, just like you've helped make the market sick. Bout time something changed. you make me sick.

yaktipper

Shorts put the price back where it belongs -- they should get paid for doing a needed service.

Pumping up crappy companies is the sickness.

kookimebux

Hello. And Bye. :)

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Date	Stock	Buy	Sell	Net
Nov 6	QXM	$4.31	$4.80	$1936
Nov 4	COT	$8.66	$8.88	$642
Nov 4	QXM	$4.61	$4.89	$822
Oct 30	DDRX	$25.70	$26.53	$812
Oct 29	CTDC	$4.00	$4.42	$781
Oct 26	AWSL	$3.24	$4.10	$2516
Oct 23	RODM	$5.27	$5.23	$301
Oct 22	AMLM	$2.69	$2.97	$820
Oct 22	USEG	$6.12	$6.09	$85
Oct 20	CBOU	$8.93	$9.06	$243
Oct 16	VRMLQ	$16.79	$18.65	$2773
Oct 13	YONG	$11.05	$11.66	$1202
Oct 13	NPHC	$0.59	$0.71	$583
Oct 12	IMGG	$0.60	$0.70	$682
Oct 9	ZAGG	$5.50	$6.10	$2380
Oct 7	GVBP	$0.03	$0.27	$702
Oct 1	NPHC	$0.70	$0.85	$1482

Total: $92,304 (644%)